When you work in an industry that’s called upon to justify its existence at every turn, data is ammunition. Experienced motivation professionals know that the right statistic placed at just the right point in a presentation can resonate with a client or prospect, magically transforming itself into the lynchpin that secures the deal.

With that in mind, here’s a look at some of the key research on engagement, rewards & recognition and management, as well as some of the major trends – business and technological – that are likely to have an impact on companies in the engagement and motivational marketplace.

Distilling the Data

Looking at the new website of the Incentive Research Foundation and analyzing all of the research conducted to date, the conclusions outlined below emerge – with one important caveat: Rewards have the most sustainable benefits when used as part of overall programs that address all of the relevant levers of engagement and conditions needed to achieve the desired result.

Noncash rewards can play a significant role helping to address the elements of emotion, fun and support needed to sustain passion over time in engagement programs aimed at achieving often-changing goals.

In order to have the desired emotional and economic results, rewards for customers, distribution partners, employees and vendors need to be carefully distinguished from compensation, yet clearly related to specific accomplishments or loyalty that has helped the organization.

Under the right program structure, noncash rewards actually appeal to both intrinsic and extrinsic motivation by demonstrating that the organization means it – the pat on the back, plaque or pin, 10% discount or letter from the president begins to ring hollow after awhile. Rewards thoughtfully selected with high-perceived value make sure people know the organization is sincere.

Rewards should generally be connected with measurable results or actions important to the organization in a transparent way and communicated to all involved.

The more rewards become confused with compensation, the more they become expected and ineffective.

The more carefully rewards are selected, the more thought given in their presentation in a way that involves significant others, the greater chance that recipients will experience a lasting impression that helps sustain future efforts.

Do-this, get-that, carrot-focused campaigns can generate short-term results but are not sustainable unless part of strategies that address all of the levers and conditions necessary to connect engagement with performance.

When asked, people will always say they prefer to be rewarded in cash. The question and answer are irrelevant. Rewards are gifts, not compensation, bonuses, or price promotions. If people didn’t appreciate gifts, more than 30% of the retail marketplace would disappear overnight.

Researchers examining the three main drivers of recognition – inclusiveness, communication and trust – found that each factor has important aspects that can power up or power down the effect of recognition on employee engagement. This “virtuous circle” represents one of management’s most potent tools for focusing employees on what matters to the enterprise and reinforcing the behaviors that contribute most directly to strategic success.
- Towers Watson, Turbocharging Employee Engagement, 2013

Research shows a link between highly engaged employees and improved health and overall well-being. Those working at high-engagement organizations reported better physical health: 56% vs. 47%. Job stress levels were lower, too. Only 28% of employees at high-engagement locations reported high job stress, as opposed to 33% at moderate-engagement firms and 39% of those at low-engagement companies.
- Aon Hewitt, Best Employers in Canada study, 2013

Operating income at companies with high levels of employee engagement improved 19.2%, while low-engagement companies reported a drop of 32.7%. Net income for high-engagement companies advanced 13.2%, while the low-engagement companies saw a decline of 3.8%. High-engagement companies had EPS growth of 27.8%, while companies with low employee engagement reported an 11.2% decline.
- Towers Perrin-ISR, Engaged Employees Drive the Bottom Line, 2012

Technology

The future of recognition and communication games in the workplace could be very bright considering that 90% of Gen Y’ers desire co-workers who make the job fun; 49% of Gens X & Y in the workforce (ages 18 to 49) play online games; 26% of thoise aged 50 and over play online games; and women now account for 40% of the gaming community.
- Pew Research, The Future of Gamification, 2012

Just under half of respondents (46%) indicate they use social media tool/techniques to enhance their incentive programs.
- IRF, Fall Pulse Survey, 2014

The insertion of social media into the total experience (onsite as well as within pre- and post-event communications) is a major development, with 60% of planners using social media in this fashion. In addition, roughly one-third of planners report integrating gaming techniques and/or virtual elements into their programs.
- IRF, Trends in Engagement, Incentives & Recognition, 2014

48% of respondents anticipate the impact of the economy will have a positive effect on their ability to plan and implement merchandise/noncash incentive programs.
- IRF, Fall Pulse Survey, 2014

81% of CEOs say they’re concentrating on talent, a position rivaled only by technology investments. In fact, 90% of the CEO’s say they’re changing their strategies for attracting and retaining talent. Unlike technology however, 61% haven’t taken the first step to change their current approach.
- PricewaterhouseCoopers, 17th Annual Global CEOSurvey, 2014

66.7% of respondents indicate they continue to be optimistic and feel the economy is having more of a positive impact on their ability to plan and implement incentive travel programs.
- IRF, Fall Pulse Survey, 2014

The policy of combining meetings and incentive events has been adopted by about half of U.S. organizations, but only 10% do so to save money, reap tax benefits or address the criticism surrounding incentive group travel. More than 40% do so in order to maximize their investment in meetings and travel rewards and/or to take advantage of having high performers in the same place and at the same time as top executives.
- IRF, Striking the Balance: The Integration of Offsite
Business Meetings and Incentive Group Travel, 2013

46% of planners anticipate no change with respect to destinations for incentive travel programs in the coming year, but 15% say there will be a shift from domestic programs to more international programs.
- IRF, Fall Pulse Survey, 2014

“Open loop” gift cards – those issued by banks and credit card companies which can be redeemed virtually everywhere – dominate the types of gift cards businesses are purchasing for incentive and loyalty rewards, varying from 56% to 62%, with the largest companies purchasing the majority of open loop cards.
- IGCC, B2B Gift Card Marketplace study, 2014

Enterprise Engagement Resources

Profit from the new Book on Enterprise Engagement & ISO 10018, 5th Edition